Market Overview - Stocks experienced a broad rally, with the S&P 500 gaining 2%, Nasdaq Composite and Russell 2000 up by 2.5%, and Dow Jones Industrial Average increasing by 1.8% following trade and tariff developments [1] - The divergence between equities and bonds is notable, as stocks are approximately 3.5% off all-time highs while bond yields remain elevated, with 30-year bonds yielding just under 5% and 10-year bonds at 4.47% [3] Earnings Reports - Macy's reported better-than-expected earnings and sales for the first quarter but warned of tariff headwinds and cut its profit outlook [4] - Salesforce announced an $8 billion acquisition of Informatica, a strategic move into Artificial Intelligence (AI), ahead of its earnings report [4] - Nvidia's stock has been volatile, dropping nearly 50% from a January high of $153 to a low of $86 in April, but has since rebounded to $135 [5] Federal Reserve Insights - The upcoming release of the Federal Reserve Open Market Committee (FOMC) meeting minutes is anticipated, with investors keen to understand the Fed's stance on interest rates in light of current tariffs [6] - Fed Chairman Powell has shown reluctance to cut rates due to economic uncertainty, which is expected to be reflected in the minutes [6] Market Sentiment - The market is largely focused on Nvidia's earnings announcement, which is expected to influence not only the chip sector but the broader market as well [7] - Despite a rally in equities, the VIX remains above its historical average, indicating potential for continued volatility [7]

Financial Data and Key Metrics Changes - Total revenues in Q1 were $93.1 million, up 25% year over year, exceeding guidance [22] - SaaS revenue for Q1 was $68.9 million, representing year-over-year growth of 34% on a constant currency basis, comprising 74% of total revenues [22][23] - Gross profit for Q1 was $69.8 million, with a gross margin of 75%, an improvement from 74.1% in Q1 of the previous year [28] - Operating income for Q1 was $13.4 million, with an operating margin of 14.4%, compared to 8.9% in the prior year [29] Business Line Data and Key Metrics Changes - Term license and support revenue grew 12% in Q1, driven by large deals in the APAC region [23] - Maintenance revenue declined year over year, while service revenues grew 4% but represented less than 12% of total revenues [23] - Combined SaaS and term license revenues grew 31% in Q1, indicating strong subscription revenue growth [23] Market Data and Key Metrics Changes - In North America, SaaS revenues grew 31% year over year, representing 82% of total North America revenues [24] - EMEA SaaS revenues grew 36% year over year, representing 85% of total EMEA revenues [24] - APAC SaaS revenues grew 40% year over year, representing 51% of total APAC revenues [25] Company Strategy and Development Direction - The company aims to become the world's leading data management software company, targeting $1 billion in ARR by 2029 [7] - Focus on integrated platforms to address converging challenges in data security, governance, and resilience [13] - Continued innovation in multi-cloud capabilities and AI-powered solutions to enhance customer value [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment remains stable, with top needs being AI and security [38] - The company is well-positioned to navigate macroeconomic uncertainties, leveraging its historical experience [9][88] - Management expressed confidence in the ongoing demand for data management solutions amid increasing regulatory pressures and AI adoption [20][83] Other Important Information - The company ended Q1 with $351.8 million in cash and equivalents, including $87.3 million from warrant exercises [30] - The company repurchased 800,000 shares for approximately $12 million in Q1 [31] Q&A Session Summary Question: Are you seeing any change in the demand environment? - Management indicated that the demand environment remains stable, with no significant changes noted [38] Question: What is the competitive environment like? - Management highlighted that data governance is driving new customer acquisitions, especially as companies prepare for AI deployment [40] Question: Can you discuss the momentum on the MSP side? - Management expressed optimism about the MSP segment, noting significant growth and the recent acquisition of Identiq [48] Question: How far along are companies in their data modernization strategies? - Management stated that companies are still in the early stages of data modernization, emphasizing the complexity of implementing AI [66] Question: Is there a shift in the direct sales strategy? - Management confirmed that direct sales focus remains on large enterprises, while the channel targets small to medium businesses [72]